Key Highlights
- Nebius secured $4.34 billion through convertible debt offering structured in two separate tranches maturing in 2031 and 2033
- This financing follows a massive $27 billion AI data center supply agreement with Meta and a $2 billion equity investment from Nvidia
- The company expects customer prepayments from Meta and Microsoft to cover 60% of expansion costs
- Additional 40% of growth funding will be sourced through a combination of debt and equity instruments
- Nebius has established capital expenditure goals ranging from $16 billion to $20 billion for 2026
Nebius Group (NBIS) has successfully completed a $4.34 billion convertible debt offering, securing substantial capital for its aggressive expansion into AI infrastructure markets.
Nebius $NBIS priced an upsized $4 billion convertible notes offering, raised from $3.75 billion, with net proceeds of about $3.96 billion.
— Wall St Engine (@wallstengine) March 18, 2026
The financing package was structured across two distinct tranches. Nebius issued $2.58 billion in convertible notes carrying a 1.250% coupon and maturing in 2031 — a figure that includes an additional $337.5 million from oversubscription. The company also raised $1.75 billion through 2.625% notes with a 2033 maturity date. An additional $262.5 million greenshoe option remains available on the longer-dated tranche.
Tom Blackwell, Chief Communications Officer, noted the offering was expanded based on investor appetite. “We’ve managed to achieve a large amount of funding while really minimizing the dilution,” he explained.
The capital raise arrives during an exceptionally active period for Nebius. March saw the company complete a $2 billion warrant transaction with Nvidia, priced at $94.94 per share. The company also finalized an agreement potentially worth $27 billion to provide Meta with extensive data center capacity. These developments build on a $17.3 billion supply arrangement with Microsoft announced last September.
Nebius stock ended Friday’s session at $117.62, while the convertible notes were priced with a conversion premium approximately 90% above that closing price.
Capital Allocation Strategy
Nebius has outlined a financing approach where customer prepayments — predominantly from Microsoft and Meta — will contribute 60% of necessary growth capital, while the balance will come from debt and equity markets. Blackwell indicated openness to additional large-scale supply contracts if terms align with company objectives. “They can be a very efficient source of capital,” he noted.
The organization has targeted capital expenditures between $16 billion and $20 billion for 2026. According to Blackwell, Nebius now possesses sufficient funding to execute that roadmap.
Addressing questions about potential overexpansion, he stated: “As long as enterprise AI adoption does continue to increase… the need for what we’re doing is going to make sense.”
Expanding Beyond Infrastructure
Beyond physical infrastructure deployment, Nebius is positioning AI cloud services as a strategic long-term revenue stream. The strategy involves building software services atop its data center infrastructure — creating recurring revenue opportunities that extend beyond current infrastructure demand cycles.
Blackwell emphasized that major contract victories also demonstrate the company’s technical expertise, not merely its financial capacity.
Nebius confirmed that both the Meta agreement and Nvidia investment materialized within the past month, illustrating the rapid acceleration of its deal momentum.
While the company hasn’t provided granular details on how convertible debt proceeds will be allocated, the stated objective centers on financing its continuous data center expansion initiatives.
The financing round reached final closing on Monday, concluding a period of intense capital-raising activity that has elevated the company’s standing in AI infrastructure sectors.
The 2033 convertible notes carried a 2.63% interest rate, while the 2031 notes were priced at 1.250%.
